June 20 (Reuters) - McDonald's will roll out its

$5 meal deal from June 25 for a limited time at some restaurants

across the U.S., the burger giant said on Thursday, as fast-food

chains ramp up cost-friendly options to boost spending among

lower-income groups.

Restaurant Brands International-owned rival, Burger

King, is also considering a $5 "Your Way deal" as companies turn

to improved offers and promotions to counter inflation-hit

customers who are increasingly opting to eat at home.

McDonald's value deal will include a McDouble or McChicken

sandwich, small fries, four-piece Chicken McNuggets, and a small

soft drink for $5.

McDouble meal options may be priced at $6 at certain

restaurants in Alaska, California, Guam, Hawaii, Nevada, New

York (Manhattan only) and Washington.

McDonald's also brought back app-only "Free Fries Friday"

that allows customers to snag a free medium fry with any $1

minimum purchase through the end of 2024.

Picky spending hurt performance at McDonald's and KFC parent

Yum Brands in the latest reported quarter, whereas promotions

fueled sales at Domino's Pizza.

Disposable income among the lower-income groups in the U.S.

is declining while menu prices have risen across the food

industry over the past year as companies tried to mitigate

higher commodity and supply chain costs.

Late May, McDonald's USA President Joe Erlinger denounced in

an open letter viral reports of runaway Big Mac prices as

painting an inaccurate picture of the company.

Meanwhile, the pivot to eating at home has been accelerated

by major retailers such as Target ( TGT ), Walmart ( WMT ) and

Kroger ( KR ) keeping prices on everyday essentials low.